Right-Wing Media Side With Pro-Romney Forces In Wash. Post's Internal Bain Capital Dispute
Research ››› ››› ANDY NEWBOLD & MARCUS FELDMAN
Right-wing media are touting a Washington Post Fact Checker article alleging that the Obama campaign "failed to make its case" in a new ad claiming that Romney "shipped jobs" overseas. But a different Post article pointing to data from the Securities and Exchange Commission has affirmed that Bain Capital, with Romney as head, "owned companies that were pioneers in the practice of shipping work from the United States to overseas."
Wash. Post: Romney-Managed Bain Capital Owned Companies That Outsourced U.S. Jobs Overseas
Wash. Post: Bain Capital "Owned Companies That Were Pioneers In The Practice Of Shipping Work From The United States To Overseas Call Centers And Factories." From a June 21 Washington Post article:
During the nearly 15 years that Romney was actively involved in running Bain, a private equity firm that he founded, it owned companies that were pioneers in the practice of shipping work from the United States to overseas call centers and factories making computer components, according to filings with the Securities and Exchange Commission.
Bain's foray into outsourcing began in 1993 when the private equity firm took a stake in Corporate Software Inc., or CSI, after helping to finance a $93 million buyout of the firm. CSI, which catered to technology companies like Microsoft, provided a range of services including outsourcing of customer support. Initially, CSI employed U.S. workers to provide these services but by the mid-1990s was setting up call centers outside the country.
Two years after Bain invested in the firm, CSI merged with another enterprise to form a new company called Stream International Inc. Stream immediately became active in the growing field of overseas calls centers. Bain was initially a minority shareholder in Stream and was active in running the company, providing "general executive and management services," according to SEC filings.
By 1997, Stream was running three tech-support call centers in Europe and was part of a call center joint venture in Japan, an SEC filing shows. "The Company believes that the trend toward outsourcing technical support occurring in the U.S. is also occurring in international markets," the SEC filing said.
In addition to taking an interest in companies that specialized in outsourcing services, Bain also invested in firms that moved or expanded their own operations outside of the United States. [The Washington Post, 6/21/12]
Previous Wash. Post "Fact Check" Called Similar Obama Campaign Claim "Untrue"
Obama Campaign Ad: At Bain Capital, Romney "Shipped Jobs To China And Mexico." Anew ad from the Obama campaign accused Romney of outsourcing jobs overseas during his time at Bain Capital. From the Obama For America ad:
VOICEOVER: Running for governor, Mitt Romney campaigned as a job creator. ... But as a corporate raider, he shipped jobs to China and Mexico. As governor, he did the same thing: outsourcing state jobs to India. [YouTube, 6/20/12]
Wash. Post'sGlennKessler: "The Obama Campaign Fails To Make Its Case." The Washington Post's Glenn Kessler wrote a blog on June 21 that gave the Obama campaign ad "Four Pinocchios," writing:
The Obama campaign fails to make its case. On just about every level, this ad is misleading, unfair and untrue, from the use of "corporate raider" to its examples of alleged outsourcing. Simply repeating the same debunked claims won't make them any more correct. [The Washington Post, The Fact Checker, 6/21/12]
Right-Wing Media Hyped Wash. Post Article Criticizing Obama Ad
Fox Nation: "WaPo's Fact Checker Slaps Obama Ad With 4 Pinocchios." In a June 21 post linking to Kessler's article, Fox Nation posted a video of the Obama campaign ad and titled the post: "WaPo's fact Checker slaps Obama Ad with 4 Pinocchios." [Fox Nation, 6/21/12]
HotAir: "Four Pinocchios To Team Obama For 'Corporate Raider' Slur." From a June 21 post on Ed Morrissey's blog, HotAir:
One would think that Team Obama would have learned a lesson from its previous attempt to demonize private equity, which flopped so badly that even its own surrogates defended Mitt Romney's "sterling business career." Instead, the Obama campaign shifted its attack slightly and called Romney a "corporate raider." Apparently, everything Barack Obama and his team know about the investment community they learned from Wall Street, and every private-equity executive is simply Gordon Gekko in better attire. Glenn Kessler rips the charge in his latest fact-check at the Washington Post [HotAir, 6/21/12]
TheBlaze: "Four Pinocchios: Washington Post Savages Team Obama's Latest Anti-Romney Ad." From a June 21 post on TheBlaze:
Because the previous attacks on former Massachusetts Gov. Mitt Romney's business record have been, you know, so successful, team Obama has decided to combine all of their anti-Romney/business talking points into one 30-second ad:
The only problem with this commercial is that it's pretty much false. Even the Washington Post (the Washington Post!) gave it a big, fat "F" for being misleading and dishonest. [TheBlaze, 6/21/12]
Newsmax: "Washington Post: 4 Pinocchios for Obama's Newest Anti-Romney Ad." From a June 21 post by Newsmax:
A new anti-Romney ad put out by President Barack Obama's re-election campaign is being slammed for being "misleading, unfair, and untrue." The Washington Post's fact checker awarded it four Pinocchios, designating the ads claims as "whoppers."
The new ad claims that GOP presidential nominee Mitt Romney was a "corporate raider" who sent jobs overseas to China and Mexico when at Bain Capital and sent state jobs to India when he served as governor of Massachusetts.
The Post noted that the claims of outsourcing by Bain and Romney when he was governor are "overblown." [Newsmax, 6/21/12]